Q3 2014 Trading Update

Total product volume sold that was produced by OCI reached 1.37 million metric tons during the third quarter of 2014, a 41% increase over the same period last year, and a 24% increase compared with the second quarter of this year, primarily driven by:

• A strong contribution from Sorfert, where volumes improved significantly from the second to the third quarter. During the third quarter, Sorfert achieved high utilization rates, at times even above design capacity.
• Smooth production at OCI Nitrogen during the quarter and both calcium ammonium nitrate and urea ammonium nitrate volumes were up strongly compared with the second quarter of this year.
• Very limited availability of natural gas at Egyptian Fertilizers Company (EFC) and Egypt Basic Industries Corporation (EBIC) during the third quarter, when the Egyptian government gave priority for natural gas supply to the electricity sector to avoid power blackouts. In the past few months, the government has taken several steps to address the country’s gas supply issue, and we expect these efforts to improve supply of natural gas next year.
• Stable methanol sales volumes at OCI Beaumont, but lower ammonia sales volumes compared to the second quarter due to unplanned downtime.
• The Fertilizer & Chemicals Group benefitted from improving volumes, lower gas prices in Europe and higher fertilizer prices during the third quarter of 2014, resulting in an improvement in EBITDA compared with both the third quarter of last year and the second quarter of this year.

• Iowa Fertilizer Company, our nitrogen fertilizer plant located in Wever County, Iowa, is the first world scale natural gas-based greenfield fertilizer plant built in the United States in nearly 25 years. Construction at IFCo was 72% complete as at 30 September 2014, on track to start production in the fourth quarter of 2015. As of 30 September 2014, the project had incurred approximately $1 billion in expenditures. The current estimate of the cost to complete the project has increased by about $100 million to a total expenditure of approximately $1.9 billion.
• OCI Beaumont has undertaken a debottlenecking project that is expected to increase the facility’s methanol and ammonia production lines by 25% to approximately 912,500 metric tons and 15% to approximately 305,000 metric tons, respectively. It is expected that the methanol and ammonia production lines will be shut down for approximately 7-8 and 4 weeks respectively beginning in January 2015 to complete the plant upgrade and turnaround. The current estimate of the total cost of the debottlenecking project and concurrent turnaround is approximately $240 to $250 million.
• On 29 September 2014, Natgasoline LLC received a final greenhouse gas (GHG) Prevention of Significant Deterioration (PSD) permit from the United States Environmental Protection Agency (EPA). Natgasoline is expected to have a production capacity of approximately 1.75 million metric tons per annum and is scheduled to commission in late 2016. It will be the first methanol facility of this scale in the United States and will be the country’s largest methanol production facility based on nameplate capacity.

On 12 November 2014, the Extraordinary General Meeting of Shareholders (EGM) approved the proposals to increase the issued share capital and subsequently decrease the issued share capital of OCI N.V. with the same amount to facilitate the spin-off of the Engineering & Construction Group through a repayment of capital in kind in the form of shares in the new company, which is expected to be named Orascom Construction, to OCI N.V.’s existing shareholders.

OCI N.V. had earlier announced on 6 November 2014 its intention to pursue a dual listing of its Engineering & Construction Group in both Egypt and the United Arab Emirates. Preparations for the spin-off of the Engineering & Construction Group from OCI N.V. are underway and the new company is targeting to list on the two exchanges during the first quarter of 2015, subject to necessary Board and regulatory approvals in Egypt and the United Arab Emirates, including amendments to Egyptian Exchange rules to facilitate dual listings in Egypt.

From the date of listing of the construction business, the Fertilizer & Chemicals Group will constitute OCI N.V.’s core business and the executive management of OCI N.V. will no longer supervise and be responsible for Orascom Construction’s operational and financial performance. Orascom Construction will from that date operate as an independent company with its own management and board of directors, but may continue to use certain back office services from OCI N.V. on a transitional basis.

• On 12 November 2014, Orascom Construction and the International Petroleum Investment Company (IPIC) announced the signing of a Memorandum of Understanding (MoU) with the Egyptian government to develop, construct and operate a 2,000 – 3,000 Megawatt (MW) coal-fired power plant in Egypt. The plant represents a milestone step towards alleviating Egypt’s power generation deficit. The MoU gives the partnership exclusivity on a site location in the vicinity of El Hamarawein port on the Red Sea coast for a period of 18 months and allows the consortium to conduct and finalize all relevant project studies, an important step in executing the project.
• The backlog and new awards continued to gain momentum that started earlier this year, with not only significant progress in Saudi Arabia and Egypt, but also at The Weitz Company in the United States, where new awards increased by 84% in the first nine months of 2014 compared with the same period last year.
• In the United States, a rejuvenated economy and an increase in energy spending are expected to create new construction opportunities. We continue to increase our presence in this large and promising construction market that currently accounts for 45% of our consolidated backlog.
• Consolidated backlog excluding projects accounted for under the equity method stood at $5.9 billion as at 30 September 2014, a 17% increase from $5.0 billion at 30 June 2014.
• New awards totalled $1.5 billion during the quarter, a 15% decrease from $1.8 billion during the second quarter of 2014.
• New awards included about $400 million of work for the Fertilizer & Chemicals Group in the third quarter of 2014 compared with $950 million during the second quarter.
• Had we continued to consolidate BESIX and certain other JV’s proportionately backlog would have stood at $8.0 billion and new awards $1.7 billion during the quarter.